I don't get it. Moving from cars to SUVs is good?
The transportation industry is going through a
TRANSITION. There are a few pieces to it:
1) EV's
2) Driving service's like Uber
3) Change in taste/reality.... as driving as a means of getting somewhere (not so much as stauts)4) Self Driving cars
I expect
FEWER types of cars to be offered over the decade of the 2020's as people look at driving in a different manner.
THAT...will not happen overnight, but I suspect that millenials
AND those after them .....
DON'T look at cars as we did and our parents did.
And for car companies like Ford ..... they likely see that they need to
DROP the number of different types of cars they offer. A smaller number of SUV's will fill in for a larger number of sedans ..... but the retail vehicle models will
DROP.The 4 items I listed above ..... some happen sooner than others. And some will change SLOWER than others. But as people drive MORE MILES in "Uber type services" ...... there is clearly LESS
NEED for satisfying retail customers desires (because there are fewer retail customers). And cars are BEGINNING to be looked at as a "means of getting from A to B)" ..... not so much as a status symbol (yes...of course there will be exceptions).
For a company like Ford....and their bottom line ...... they are doing what any reasonable company would do: Trim back where they
AREN'T making money, and focus on where they ARE making money. So they aren't going to try and fill EVERY SINGLE NICHE like they used to in the retail car market.
And that is actually a good thing for
CONSUMERS.....because it should decrease costs to Ford, and SOME of that cost saving should be felt by the consumer.
If you fast forward to 2030....I think the number of different vehicle models offered will be far fewer.
